Chime Communications, owners of PR agency Bell Pottinger, has reported significant progress in its management buyout (MBO) as a result of low revenues in its PR sector.

The main terms of purchasing a significant stake in its public relations department have been authorised, and involves the companies: Bell Pottinger Sans Frontières, Bell Pottinger Public Relations, Bell Pottinger Middle East, Bell Pottinger Public Affairs and Chime’s 60% and the 40% management stake in Pelham Bell Pottinger.

By reinvesting the proceeds acquired from the MBO, Chime hopes to boost its stronger divisions, Sports Marketing and Advertising and Marketing, and provide a strong return for shareholders in the future.

Lord Bell says: “This [PR] division has seen a decline in revenue and profit so far this year which, together with the ending of the sizeable American Government contracts, means the division is not expected to make the full year forecast.”

Amid this repositioning strategy, the chairman of Bell Pottinger Public Affairs, Peter Bingle, has left the business to set up his own consultancy.

Bingle’s departure is understood to be a resignation, as opposed one of the redundancies BPPA is expected to propose, and intends to start up Peter Bingle Consulting.

On Twitter, Bingle says: “All good things must come to an end. I am looking forward to advising blue chip clients and making the case for the public affairs industry!”